The China Securities Regulatory Commission and the Ministry of Finance jointly issued a notice launching a supplementary process to expand the roster of mainland accounting firms that can audit eligible H-share companies listed in Hong Kong. The framework is designed to update the current list of 10 firms and, based on consensus reached with Hong Kong regulators, recommend two additional qualifying firms for inclusion. The notice sets out application principles, eligibility criteria, required documentation, procedural steps and supervisory expectations. Applicants must have completed filing for securities services, meet minimum thresholds for business revenue and number of certified public accountants, maintain effective internal governance, and either have a member firm established in Hong Kong or belong to the same international accounting network as a Hong Kong accounting firm; priority factors include advanced practice digitalisation and information systems, stronger capacity to bear professional liability risk, a higher degree of integrated management, and a Hong Kong member firm with substantial audit experience in H-share or other Hong Kong-listed companies. Revenue and audit revenue are to be assessed using data from audited 2024 financial statements, with overseas branch income permitted to be consolidated subject to specified proof, while headcount figures will be taken from the Ministry of Finance and CSRC filing platforms. A dedicated review and recommendation committee will run the process, following steps that include document review, public notification, on-site inspection and comprehensive assessment before recommending the supplementary list to Hong Kong regulators and issuing an announcement. Post-admission oversight will be ongoing rather than permanent, with annual assessments tied to securities services filing and practice quality inspections, the ability to withdraw recommendations where requirements are no longer met, rolling inspection coverage of H-share audit engagements, and strengthened cross-border supervisory coordination and information sharing with Hong Kong.
China Securities Regulatory Commission 2025-11-21
China Securities Regulatory Commission and Ministry of Finance open applications to add two mainland audit firms to the H-share audit firm list
The China Securities Regulatory Commission and the Ministry of Finance are expanding the list of mainland accounting firms eligible to audit H-share companies in Hong Kong, recommending two additional firms. The framework outlines application principles, eligibility criteria, and supervisory expectations, emphasizing digitalization, risk management, and integrated governance. A review committee will oversee the process, with ongoing oversight and annual assessments to ensure compliance and quality.